Arizona Real Estate License Practice Exam 2026 - Free Real Estate Practice Questions and Study Guide

The appropriate action when a home inspector overlooks a significant flaw is to disclose the information. In real estate transactions, agents have a legal obligation to disclose material defects or significant issues affecting a property, regardless of the seller’s request for confidentiality. This duty of disclosure is in place to protect the buyer from potential harm and to ensure that they make an informed decision.

In this context, transparency is crucial because it maintains the integrity of the transaction and fosters trust between all parties involved. If an agent were to keep the worrying information confidential, they could expose themselves to potential legal liability for failure to disclose known issues, especially if those defects lead to financial or physical harm to the buyer after the sale.

While understanding the seller's wish for confidentiality is important, the agent's ethical and legal obligations to the buyer take precedence. This creates a clear standard that protects buyers, promotes ethical practices in real estate, and helps avoid disputes in the future.